TRANSPORT for London (TfL) has reached an agreement with the British government that will see £250m in capital investment funding provided to TfL during the next year. A further £43.1m, promised in January from the government’s Levelling Up Fund, was allocated on December 19 to upgrade Colindale and Leyton stations on the London Underground (LU) network.
In its 2023 business plan, TfL stated: “having constrained our investment in capital renewals to between £400m and £600m per year for the last five years, against an estimated steady state requirement of around £1bn per year, this business plan sets out a renewals investment plan that builds up to a sustained level of around £850m.”
In the plan, major rolling stock and signalling replacement was budgeted at £776m for 2023-24, rising to £936m in 2024-25 and £940m in 2025-26.
“Through a huge effort to reduce costs and rebuild our ridership and revenue following the pandemic, TfL is now on track to be financially sustainable in terms of its day-to-day operations,” says Mr Andy Lord, London's transport commissioner. “We are also able to cover the cost of the majority of our capital investment.
“We, alongside London’s business stakeholders and others, have consistently made the case that additional government support for capital investment in transport is needed if we are to be able to continue to deliver vital improvements to London’s transport network, unlock new homes and support growth across London and the UK.
“It is good news that we have now reached an agreement with the government on the capital support that they will provide over the next year, and we are grateful for the support. However, we will now need to reassess our recent draft business plan and address the impact of the continuing shortfall in funding. That work is underway so that we can confirm as soon as possible what we will deliver for London.”
